(Source: Datamonitor)
US-based First Niagara Financial Group has entered into an underwriting agreement for the sale of 33.34 million shares of common stock at a price of $12 per share for gross proceeds of approximately $400.1 million, exclusive of any underwriter over-allotment option.
The net proceeds of the offering after deducting underwriting discounts and commissions and estimated offering expenses are expected to be approximately $383.8 million.
First Niagara has granted the underwriters a 30-day option to purchase up to an additional five million shares of its common stock to cover over-allotments, if any.
Keefe, Bruyette & Woods and Sandler O'Neill + Partners are acting as joint bookrunning managers for the offering. The company expects to close the transaction, subject to customary conditions, on or about September 30, 2009.
First Niagara said that the net proceeds of the offering will be used for general corporate purposes and bolster its already 'well-capitalized' position and allow for continued opportunistic growth.
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